As the artificial intelligence (AI) megatrend continues to captivate investors, with Nvidia (NVDA) still dominating the spotlight, there are hidden gems waiting to be discovered. Citigroup strategists led by Drew Pettit recently advocated buying “the next leg of the artificial intelligence trade,” pointing out the micro-bubble risks in some areas of the market.
Overlooked Opportunities in AI Stocks
Highlighting the importance of focusing on AI stocks that are still trading at a reasonable price, the list presented by Citigroup categorized them into enablers, creators, and users. Among these, companies like Bill Holdings, Inc. (BILL), Smartsheet Inc. (SMAR), and Wix.com Ltd. (WIX) often go unnoticed but have strong potential.
Bill Holdings – Small Business Empowerment
Based in San Jose, California, Bill Holdings provides financial automation software for small and midsize businesses worldwide. With over 470,000 clients and a network of 5.8 million members, including major financial institutions, Bill Holdings is well-positioned to capitalize on the transition away from manual payment processing methods.
Strong Financial Performance
In its recent earnings report, Bill Holdings exceeded expectations with a 22% year-over-year revenue increase, showcasing its growth potential. Analysts predict a profitable fiscal year ahead, with a consensus “Moderate Buy” rating and an average price target indicating a 39.9% upside potential.
Smartsheet – Streamlining Workflows
Based in Bellevue, Washington, Smartsheet offers a cloud-based platform for managing workflows efficiently. With automation capabilities and integration with major applications like Microsoft 365 and Google Workspace, Smartsheet caters to the needs of businesses across various sectors.
Continuous Innovation Driving Growth
Smartsheet’s fourth-quarter results highlighted its strong demand, achieving $1 billion in annualized recurring revenue. With optimistic revenue guidance for the upcoming quarters and a consensus “Strong Buy” rating from analysts, Smartsheet is poised for further expansion.
Wix.com – Website Creation Made Easy
Headquartered in Tel Aviv, Wix.com allows users to create professional websites without the need for coding skills. Offering a range of tools from SEO to enterprise-grade features, Wix.com has seen significant stock growth and positive user feedback on its AI-powered solutions.
Revenue Growth and Product Innovation
With revenue exceeding expectations in its latest report and a strong focus on AI tools, Wix.com aims for accelerated growth in 2024. Analysts foresee substantial EPS growth in the coming years, supporting the consensus “Strong Buy” rating and positive price targets.